As the owner of a small business, the money you allocate to paying for employee benefits often seems like a severe drain on your already small profit margin. To continue operating a successful organization. However, it is important to take a different attitude to that category of expenses. It can make the difference between a loyal, hardworking staff and a group of people who show up only to punch the clock. Offering excellent employee benefits brings you, the employer, benefits in return.
Employee Benefits in Edmonton, AB
One of the major expenses of running a business is employee turnover. Thriving businesses can attract good employees and keep them on the payroll through making available a good support system. Turnover begins to be a problem when staff members suffer physical or mental issues and find that no help is forthcoming in the form of employee benefits.
The Sasha Corporation was established in 1984 to consult with businesses on their employees and the benefits offered to them. This firm averaged the results of 15 studies to demonstrate that it costs $9,444.47 to turn over just one $8 an hour employee. Beyond that average, think about positions in companies dealing with advanced technology or working under demanding licensing rules. Costs for turnovers in such organizations can go beyond $100,000.
It is evident that employee retention carries tremendous value for your business. Workers who have the backup options given them by a good benefits plan are less stressed. They are more inclined to feel loyalty to the company and feel part of the team rather than just a day-by-day paycheck worker. A consulting company in HR can assist you in finding an affordable benefits plan that will fit into your budget while it satisfies your employees.
One option that is commonly selected by companies is that of paying for 50% of the employees’ benefits. Not only is this a tax-deductible expense, but it is also an excellent indicator to your employees that you have an interest in their health and well-being. The fact that they are paying the other half of the cost tends to cut down on abuse of a health plan.
A health spending account is another option available to Canadians. This is a vehicle that allows both employers and employees to contribute over time to a private self-insured health service plan so that funds are available when needed for such things as glasses, massages, and eye surgery.
Some benefit plans are available that present packages that can be individually tailored to conform to the needs of each employee. For those who suffer from chronic conditions or face long-term rehabilitation, these are excellent options. Flexible benefits like these are gaining popularity in the business environment, and employees are more and more looking for them as options in their benefit plans. Many workers are coming to realize that these individually designed plans are the best choice for them.
Regardless of the type of benefits, you decide to offer your employees; education remains a cornerstone of implementing a program successfully. Hold a meeting to go over the benefits plan and hear from your employees. Listening to their concerns and responding to them will be a big step in creating confidence that your company is doing its best to support and care for them.
Get past thinking of the cost of providing benefits to making a hole in your pocket. Look at it instead as a means of building loyalty and productivity among your employees and preventing the costs of new hires and training.